Investment in prize bonds of Rs40,000 surged by 192pc: SBP

KARACHI: Investment into premium prize bonds of Rs40,000 denomination sharply increased BY 192 per cent, the State Bank of Pakistan (SBP), said on Wednesday.

The State Bank of Pakistan’s (SBP) statistics showed that investment into registered or premium prize bonds surged to Rs17 billion in October 2019 compared with Rs5.8 billion in the corresponding month a year earlier.

The premium prize bonds are being issued only against computerised national identity cards with valid bank accounts.

The government also announced biannual profit of 1.965 percent to make the instrument attractive and the payout is directly transferred to the bond holders.

Read more: Economy on the mend, says Hafeez Shaikh

Around Rs232 billion was converted into either premium bonds or transferred into saving accounts or other bank accounts following the government’s initiative to discontinue prize bonds of Rs40,000 denomination to bring the money into documented economy.

Earlier in the day, Adviser to the Prime Minister on Finance Dr Abdul Hafeez Shaikh said the government’s prudent policies to bring about macroeconomic stability are yielding results.

Speaking at a seminar in the capital city, he said the incumbent government has been bringing reforms to the country’s tax policy. He added the documentation of the economy is underway.

The adviser said efforts are afoot to whittle down fiscal deficit to funnel funds into the development sector. He said the ruling PTI was saddled with tough economic conditions when it was catapulted into power.